Assume that the japanese 1-year interest rate is 5 percent, Basic Statistics

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Assume that the japanese 1-year interest rate is 5 percent

Assume that the Japanese 1-year interest rate is 5 percent while the U.S. 1-year interest rate is 8 percent. What percentage change in the Japanese yen would cause a U.S. firm borrowing yen to incur the same effective financing rate as it would if it borrowed dollars?

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Basic Statistics: Assume that the japanese 1-year interest rate is 5 percent

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